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From the September 2007 issue of Investment Advisor • Subscribe!
Some More TIPS
Among those clients who may be particularly interested in this type of strategy are:
- Existing or prospective municipal bond owners at risk of losing real returns to inflation
- Nonqualified account owners who invest either in TIPS funds or in TIPS directly and are exposed to "phantom income"
- Clients concerned about the negative impact of inflation on purchasing power
- Retirees looking to protect their income stream from taxes and inflation
- High-net-worth clients currently earning lower after-tax yields from taxable bonds
- Clients looking to enhance portfolio diversification with a low-risk, low-correlation asset class